Facebook Can Weather Storm Better Than Big-Tech Peers, MKM Says

By Yasin Ebrahim 

Investing.com – Wall Street is teetering on the brink of a historic percentage slump in the , but for investors looking to stick with big tech, Facebook is likely the best bet, MKM partners said.

Megacap technology and internet stocks are “significantly diversified” businesses that are better able to weather uncertainty than in the past, MKM Partners said, singling Facebook (NASDAQ:) out as the stock with the least downside risk, followed by Amazon.com (NASDAQ:) and then Alphabet I(NASDAQ:).

All three stocks were down more than 6% on Thursday.

The diversified businesses of tech stalwarts, including Facebook, Amazon and Google, offer “greater resilience and likely a greater ability to endure dramatic body blows,” the firm added.

Google’s exposure to travel-related ads, however, makes the search-engine giant the most vulnerable to downside pressures, as travel demand has soured in the wake of the coronavirus outbreak, which has seen governments restrict travel.

Just a day earlier, President Donald Trump said the United States would suspend travel for non-citizens and non-residents from 26 European countries – excluding the U.K and Ireland – into the U.S.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.